Ampersand, a trailblazing electric transport energy firm in Africa, has successfully raised $19.5 million in funds. A notable $7.5 million of this total was secured as new debt from the Africa Go Green Fund (AGG), managed by Cygnum Capital.
This funding will be utilized for three primary objectives—to boost the production of electric motorcycle batteries, grow the existing battery swap station infrastructure, and accelerate research and development (R&D) efforts centered around battery technology, software optimization, and further improving battery-swap systems.
The company intends to allocate the equity funds to hasten product development, while both debt and equity funds will be directed towards enlarging Ampersand’s battery swap network. This expansion is vital for catering to the growing demand from African delivery and taxi motorcycle riders aiming to switch from conventional fuel to electric motorcycles.
The firm’s R&D efforts will largely focus on the creation of Ampersand’s next-gen batteries and enhancements to the battery-swap technology.
Established in 2016, Ampersand focuses on building and financing electric motorcycles that are not only cheaper to purchase and operate but also outperform the five million gasoline-powered motorcycle taxis across East Africa.
From its commercial inception in May 2019, Ampersand’s fleet has grown to include over 1,000 units, with projections estimating that the fleet will surpass 10,000 units by the end of 2024.
The startup, Ampersand, has built a reputation for its dedication to affordability and environmental sustainability. Its battery fleet, produced in Africa, is globally recognized as a leader in cost per kilometer and uptime for lightweight electric vehicles.
The firm has set an ambitious target to serve one million vehicles daily by 2030, thereby promoting the development of a green economy and the creation of environmentally friendly jobs.
Ampersand’s innovative approach has landed it on the Start Up Energy Transition’s 2023 SET100 List and earned it the 2023 Secretary of State’s Award for Corporate Excellence in Sustainable Supply Chains.
Why the Investors Invested
The significant investment in Ampersand can be linked to several compelling factors. Principal amongst these is the company’s proven success since its formation in 2016, and its distinction of being the first in Africa to roll out electric motorcycles in May 2019.
Over the past four years, Ampersand’s motorcycles have collectively covered a remarkable 180 million kilometers, leading to a significant cut of 8,000 tons in carbon emissions. Currently, the company caters to 1,700 electric motorcycle riders, enabling 140,000 monthly battery swaps in Kigali and Nairobi.
The Ecosystem Integrity Fund (EIF) spearheads the investors, joined by Acumen and the Hard Edged Hope Fund, recognizing the considerable contributions Ampersand has made in championing sustainable, affordable, and reliable mobility solutions in Africa.
Both existing and new investors are motivated by the confidence in Ampersand’s business model, technology, customer-centric approach, robust unit economics, and competitive edge to support the company in a difficult fundraising climate.
Furthermore, Ampersand’s mission alignment with the wider green transition occurring in Africa has strengthened investor confidence even more.
